- Netflix is exploring licensing video podcasts as it looks to its next phase of growth.
- YouTube’s success with video podcasts has shown they’re not just for listening.
- Podcasts could offer Netflix cheap content and potential ad revenue growth.
Netflix has spent the past two decades upending the TV business. Could video podcasts be next?
Netflix has been exploring potential deals with podcasters, four industry insiders familiar with Netflix’s strategy told Business Insider. The effort comes as YouTube’s rise as a living-room fixture and podcasting powerhouse has stoked interest from Netflix in creator content.
Last year, Netflix looked into doing a deal with Alex Cooper of “Call Her Daddy” fame, two people familiar with the talks told BI. Cooper ended up striking a deal with SiriusXM reportedly worth up to $125 million.
Netflix declined to comment.
A top talent agent said that in conversations in recent months, Netflix insiders had warmed to the idea of tapping podcasting talent to host a talk-based video show, after previously expressing skepticism that the format could work on the platform.
“More recently they are exploring: Is this doable? Which one would make sense for us? They ask about specific names,” the agent said. “It’s a way to get an amazing volume of content at a fraction of what they pay for scripted and unscripted budgets.” This person, along with some other industry insiders, spoke on the condition of anonymity to protect business relationships; their identities are known to BI.
Netflix’s past forays into talk-style shows have generally revolved around comedians and have often been short-lived. The streamer has not completely abandoned that approach. Last month, Netflix announced that it had signed John Mulaney to a 12-week-long show “Everybody’s Live with John Mulaney.” This follows the six-week “John Mulaney’s Everybody’s in LA” and other projects Mulaney has had with the streamer.
The effort to sign podcasters, however, is an indication of Netflix’s general warming to the idea of working with creators, industry insiders told BI. In recent months, Netflix has welcomed YouTube-born creators, including entertainers The Sidemen and kids’ educator Ms. Rachel, to its platform.
Video podcasts could be a natural extension of that effort.
“I could see a world in which audio-only and vodcasts are streamed on Netflix so that they can offer an all-in-one place to keep users on their platform for everything,” said Jessica Cordova Kramer, the cofounder of Lemonada Media, which works with Julia Louis Dreyfuss and Meghan Markle on their podcasts.
Video podcasts can appeal to Netflix and other streamers because they are cheaper than traditional TV shows, their regular release schedules can build a habit, and they can help boost ad revenue by adding additional inventory.
“We have spoken with multiple streamers looking to partner with us for licensed content,” Cordova Kramer said.
Podcasts are increasingly being watched
Netflix is no doubt seeing how YouTube has become the top platform for podcasts. It beat out Spotify and Apple as of the fourth quarter of 2024, according to Edison Research. Creators like Tana Mongeau and Logan Paul, in turn, are chasing the podcast boom by creating their own shows, helping expand their business through touring, merch, and more.
Many podcasts, especially those of the talk variety, also now have video components. Edison found that 89% of weekly Gen-Z podcast listeners watched (or listened to) podcasts with video as of the end of 2024. YouTube said people watched 400 million hours of podcasts on televisions in 2024 via its platform.
This trend has drawn the format closer to the daytime and late-night talk shows that have been on TV for decades, said Vox Media’s SVP and general manager for audio and digital video Ray Chao.
Chao said that TV companies other than Netflix had already sought out talk shows that began in the digital realm. He pointed to Pat McAfee at ESPN and “Hot Ones” at Hulu. Chao declined to comment on Vox Media’s active business opportunities in the space.
Industry insiders say more streamers entering the fray could be a boon for the podcast industry.
“Podcasting has sort of been through a lot the last 18 months,” said PAVE Studios founder Max Cutler, citing Apple’s iOS 17 update, which changed podcast downloads and impacted ads. “Having someone like Netflix come in will really help grow the overall pie of listenership and viewership.”
What does Netflix want?
Industry insiders said they see potential Netflix deals going a few ways. Netflix could license existing podcasts and forego exclusivity, as it did with “The Amazing Digital Circus,” a popular YouTube show that came to Netflix in October.
Netflix may also want to have something unique, three people familiar with its efforts said. In the case of Cooper, Netflix expressed interest in creating original shows around the star, one of the people familiar with the talks said. A model could be something like Max’s “Smartless: On The Road,” a show based on Jason Bateman, Will Arnett, and Sean Hayes’ popular podcast.
Netflix could even want shows all to itself — or at least exclusively for a certain time period before they’re available on YouTube. It could also offer subscribers an ad-free version as an advantage over the YouTube version, or seek out ancillary content from hosts beyond the core podcast property.
None of the insiders who spoke with BI thought Netflix was on the verge of challenging YouTube anytime soon. But some saw a day when Netflix might offer a creator-led section or free version of its service, which could eat into YouTube’s dominance.
One challenge in the short term: Netflix will likely want to enter the podcast business with the biggest creators, and there aren’t many available.
Notables like Cooper, the Smartless guys, and Dax Shepard have already been snapped up for eye-popping deals. One potential candidate is Kylie Kelce, wife of Jason Kelce, who just passed Joe Rogan as the most popular on Apple and Spotify. Or Netflix might look to those who could build on its comedy vertical, like Tony Hinchcliffe, who hosted Netflix’s “Netflix is a Joke” comedy festival.
Still, industry insiders generally said they felt it was only a matter of time before more of these deals got done.
“If the first round of huge podcast expansion and acquisitions came from the Spotifys, the Siriuses, the Amazons of the world, the next round is probably going to come from the streamers,” Cutler said.
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